What You Can Do If You Do Not Qualify For Chapter 7 Bankruptcy

Law Blog

If you are counting on using Chapter 7 bankruptcy as a way of eliminating all your credit card debts, you might feel very disappointed if you find out you do not qualify for this branch. If this happens to you, there are some options you could consider, though, and here are some of them.

Do nothing

The first thing you could do in this situation is to choose to do nothing. If you do not currently qualify for Chapter 7, you might decide that you will just do nothing and continue trying to make it without any form of help. While this is an option, it is not usually the best option for most people.

Use Chapter 13 bankruptcy

When a person's income is too high and leaves them unable to use Chapter 7, this person is usually able to use Chapter 13 bankruptcy instead. This branch requires a plan to repay the debts you owe, and that is why many people would rather use Chapter 7, but it offers a lot of great benefits too. One such benefit is that it allows you to keep every asset you own, including your car and house, whereas there are risks of losing assets in a Chapter 7 case.


If you do not qualify due to income levels or dates from a past bankruptcy case, another option you have is to simply wait a while. If you wait long enough, you might qualify for Chapter 7. For example, if you filed for Chapter 7 seven years ago, waiting just one more year would make you eligible to file again, as there is an eight-year waiting period with filing for Chapter 7 after filing for it in the past.

If you cannot file due to your income level, you might be able to file in just a few months if your income drops during this time.

Find a different option for debt-relief

The only other option you have at this time is to look for alternatives to bankruptcy. For example, you could evaluate a credit counseling program to see if that would help. Another option is to look into debt consolidation. There are several alternatives that could be beneficial for you at this time if you cannot use Chapter 7.

These are the four options you have at this time. If you would like more details about these options or others, talk to a bankruptcy attorney service.


23 September 2019

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